Over-the-Top (OTT) platforms have emerged as a dominant medium for delivering content to mobile phones, televisions, desktops, and other converged devices. However, their rapid proliferation has sparked significant contention among traditional service providers who operate under government-issued licenses for broadcasting services, particularly linear TV. These licensed providers—including DTH and IPTV operators—are subject to stringent regulations, such as mandatory license fees, pricing controls, and interconnection requirements, none of which apply to OTT platforms, despite both delivering essentially the same content with slight variations in format.
For instance, DTH and IPTV operators must pay an 8% license fee, while MSOs and cable TV operators, though exempt from license fees, remain subject to the TRAI’s National Tariff Order (NTO) regulations. In contrast, OTT platforms bypass these regulatory frameworks entirely, enjoying a significant competitive advantage. This disparity has not only eroded the subscriber and revenue base of traditional providers but has also undermined the principles of fair competition.
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